Market segments
Market segmentation is the process of grouping potential customers together by common characteristics such as gender, age or lifestyle.
Market segmentation is used to allow a business to more effectively tailor their products to a specific group of customers.
Markets can be segmented in a number of ways:
- age– Different age groups will have different needs and wants. For example, a teenager will have a different fashion style than that of a pensioner. They may also have different tastes in restaurants or music.
- gender– Males and females may have differing requirements from their products and services such as toiletries, grooming products and clothing.
- location– Products and services can be tailored towards different geographical locations. This may be due to varying weather conditions.
- occupation– Some products are tailored for customers with a specific occupation such as steel toe cap boots for mechanics or builders.
- religion– Different religious groups may have specific needs and wants. An example of this could be Easter-themed products for Christians or halal food for Muslims.
- lifestyle– A consumer’s lifestyle will have an influence on which products or services they purchase. A couple with no children will have different tastes and requirements from a couple with a young family.